Global stocks rise as oil prices fall 2%

• Global stocks edged higher as falling oil prices reduced concerns about inflation and bond yields moved lower.
• Brent crude futures declined more than 2% to $86.45 per barrel as markets watched developments around the Strait of Hormuz.
• Investors focused on potential reopening developments and awaited Nvidia’s latest earnings report for signals on the artificial intelligence sector.

Global stocks edged higher on Wednesday as Brent crude prices fell more than 2% to $86.45 per barrel, easing some inflation concerns linked to disruptions around the Strait of Hormuz.

Markets responded to reports that Iran had restarted talks with Oman over managing the Strait, while investors monitored the impact of the nearly six-month conflict on energy supplies and global inflation.

“Oil prices have moved away from that 90+ move, so there is some optimism that they could cool further,” said Fiona Cincotta, senior markets analyst at City Index.

The decline in oil prices pushed some bond yields lower, with Germany’s two-year bond yield falling more than 2 basis points to 2.771% and the U.S. two-year Treasury yield remaining at 4.199% after a decline of about 4 basis points on Tuesday.

Following the market move, the MSCI World Index was up 0.1% while Europe’s STOXX 600 remained near a more than one-week high.

Investors continued watching energy market developments as the Strait of Hormuz remained a key factor for oil supply expectations, with the waterway previously handling about one-fifth of global traded oil.

Markets also awaited Nvidia’s upcoming earnings report, with investors monitoring the artificial intelligence sector for further indications on demand and corporate spending trends.